When it comes to buying a home, getting the right financing is key. They loan you choose will have a major impact on your financial life over the course of your loan term. Just a small difference in your interest rate can mean saving thousands of dollars. There are also other things to consider when it comes to your mortgage including fees and whether or not you need to pay for private mortgage insurance (PMI). There are a variety of loans to choose from. One type of loan that you may be eligible for is a VA loan. Here's what you should know.
Eligibility Requirements
When it comes to VA loans there are a few eligibility requirements that you need to meet in order to qualify. VA loans are open to veterans, current members of the military, and even military spouses in certain situations. You may qualify if you have served 90 days of active service during wartime, 181 days of active service during peacetime, spent at least 6 years in the national guard or reserves, or are the spouse of a service member who died in the line of duty or as a result of their service.
Your Credit Score Is Taken into Account
Like with other types of loans, your credit score will play a large role in whether or not you are approved. Typically in order to qualify for the VA loan program, you will need a credit score of at least 620. However, the requirements for credit can vary from lender to lender and also based on your situation. If you are unable to qualify due to your score, taking steps to improve your credit can help. Paying down debt and also making sure that your bills are paid on time can increase your credit score within a short amount of time.
No Down Payment Needed
If saving up a down payment is a struggle for you and hindering your dreams of owning a home, a VA loan may be right for you. With these loans, no down payments are needed and there is no private mortgage insurance. While no down payment is needed, you will have to pay a funding fee. This fee lowers the more you put down on your home. However, with no down payment, the funding fee is typically 2.15 percent of the value of the loan.
If you have served in the military, are actively serving, or are a spouse of a member of the military, a VA loan may work for you. Learn more about your options by contacting companies such as Aligned Mortgage.
Share29 May 2019
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